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What Makes Supply Chains More Resilient to Economic Shocks?

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Abstract

The recent supply chain disruptions caused by COVID-19 lockdowns highlighted the importance of understanding supply chain resilience, which is the extent to which supply chains can resist, adapt to and recover from a sudden economic shock. We analyze the various COVID-19 lockdowns across India to understand which supply chains were more resilient to the lockdown disruptions. Firms that bought more complex products and that transacted with fewer and more important suppliers proved to be more resilient by maintaining buyer-supplier relationships through the lockdowns and exhibiting smaller declines in input value purchases.

Suggested Citation

  • Claire Conzelmann & Guarav Khanna & Nicolas Morales & Nitya Pandalai-Nayar, 2022. "What Makes Supply Chains More Resilient to Economic Shocks?," Richmond Fed Economic Brief, Federal Reserve Bank of Richmond, vol. 22(46), November.
    • Handle: RePEc:fip:fedreb:95105
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    File URL: https://www.richmondfed.org/publications/research/economic_brief/2022/eb_22-46
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